Only Nine Dow Components With Recent Insider Buying, GE is One of Them

The officers and directors of a company tend to have a unique inside view into the business, so when these insiders make purchases, investors are wise to take notice. Presumably the only reason for a company insider to choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. Within the 30 components of the Dow Jones Industrial Average, only nine companies have experienced such buying over the trailing six month period, one of which was General Electric Co (NYSE: GE), where an investment totaling $774.6K invested across 2 purchases was made by Director Alan G. Lafley. Click Here to Learn Which Other Eight Dow Components Also Had Recent Insider Buying »

Lafley’s average cost works out to $19.36/share. In trading on Monday, bargain hunters could buy shares of General Electric Co (NYSE: GE) and achieve a cost basis lower than Lafley, with shares changing hands as low as $19.14 per share. Shares of General Electric Co were changing hands at $19.30 at last check, trading off about 0.2% on Monday. The chart below shows the one year performance of GE shares, versus its 200 day moving average:

Looking at the chart above, GE’s low point in its 52 week range is $14.02 per share, with $21.00 as the 52 week high point — that compares with a last trade of $19.30.

The current annualized dividend paid by General Electric Co is $0.68/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/23/2012. Below is a long-term dividend history chart for GE, which can be of good help in judging whether the most recent dividend with approx. 3.5% annualized yield is likely to continue.

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